Author: Elisa Dell’Apa
The French luxury group has decided to sell to the US real estate investment fund Simon 100% of it’s the Mall luxury outlets. Founded in 2001, The Mall manages two luxury outlets in Italy: one at Leccio, near Florence, and one at Sanremo.
Simon – part of the S&P 100 index, which includes the 101 major blue-chip firms across multiple industry groups in the US market – already owns many prestigious locations dedicated to shopping, dining and entertainment. Kering’s brands, such as Gucci, Saint Laurent, Balenciaga and Bottega Veneta, will still be present in the two Italian outlets with their boutiques, following the group’s strategy of limiting its presence to very luxurious and prestigious locations.
During the deal, Societe generale was the only financial advisor of Kering, with a solid team made of Olivier Biraud, responsible of Kering group coverage, Cristiano Cirulli, in charge of m&a for Italy, Marco Bessone, Emea manager for the fashion&luxury sector, Bertrand Masson, Emea co-manager for real estate, Vito Tricarico, vice-president m&a for Italy, Gianluca Fumarola, associate m&a for Italy.
The sale of this non-strategic – Kering says – assets will generate a net income of 350 millions €: this aspect is not to be overlooked, especially if we think at the recent financial situation of the French luxury firm.
Last October, Kering has registered a 15% decrease in the third trimester, with Gucci registering the negative peak of -26%. CEO François-Henri Pinault commented: “We’re carrying out a profound transformation in a moment in which the entire sector is facing adverse conditions”.
